Today the U.S. House released its proposed education and labor funding bill for fiscal year 2027 (FY27, which begins September 30). The bill includes good news and some bad news for community college students.

First, the Good News

Thanks to the bipartisan advocacy of community college leaders and students this year, the bill protects or provides minor increases to top community college priorities, including:

• Pell Grants: $50 increase to the maximum Pell Grant award, to $7,445. This spring, community colleges helped earn a record-breaking 41 House Republicans and 141 Democrats publicly supporting Pell Grant funding. The bill provides $15 billion to shore up the Pell Grant shortfall.
• Strengthening Community Colleges Training Grants (SCCTG): $75,000,000 ($10 million or 15% increase). This spring, a record 8 House Republicans and 8 Democrats publicly supported SCCTG funding.
• Career and Technical Education (CTE): $1.448 billion ($8 million or 0.6% increase). This spring, 10 House Republicans and 47 Democrats publicly supported CTE funding.
• Apprenticeships: $290 million ($5 million or 1.8% increase)
• TRIO: $1.197 billion ($6 million or 0.5% increase).
• GEAR UP: $394 million ($6 million increase; 1.5% increase)
• Historically Black Colleges and Universities (HBCUs): $1 million increase (split among undergraduate and master’s programs TBD), with $6,750,000 ($750,000 increase) for HBCU community or junior colleges.
• Tribally Controlled Colleges and Universities (TCCUs): $57.8 million ($4 million or 7.4% increase)
• Strengthening Institutions Programs and Minority Serving Institutions (MSIs): $16 million increase overall (precise program funding TBD).

Now, the Bad News

The bill makes crucial cuts to student financial aid and job training for community college students. Overall, the bill proposes an $8 billion cut (10%) for the U.S. Department of Education (ED) and a $3.7 billion cut (27%) for the U.S. Department of Labor (DOL). Cuts to key community college programs include:

• Eliminate Adult Basic Education State Grants: $0 ($715 million or 100% cut)
• Slash Supplemental Educational Opportunity Grants (SEOG): $546 million ($364 million or 62% cut)
• Slash Federal Work-Study (FWS): $908 million ($322 million or 26% cut)
• Eliminate International Education: $0 ($81 million or 100% cut)
• Eliminate and Slash DOL Job Training Funding, including slashing the Employment and Training Administration by $3.3 billion (32%), slashing Workforce Innovation and Opportunity Act (WIOA) by $1.8 billion (62%), eliminate WIOA Adult Job Training ($876 million or 100%), eliminate WIOA Youth Job Training ($948 million or 100%), and eliminate Reintegration of Ex-Offenders ($110 million or 100%).
• Eliminate Subsidized Student Loans for 440,000 Community College Students (4 million total students). Without subsidized loans, students will need to use more costly unsubsidized or private loans, costing thousands of dollars more over the loan term. Approximately 11% of subsidized loans go to community college students.

Here’s the News We Don’t Know Yet

The bill does not yet specify funding for some community college priorities. After the full Appropriations Committee markup on Tuesday, June 9, the committee will release a detailed report specifying funding for each program and additional policy details. The following community college priorities remain TBD:

• Child Care Access Means Parents in School (CCAMPIS)
• Postsecondary Student Success Grants (PSSG)
• Basic Needs for Postsecondary Students

 ***Community colleges need your voice! Contact your U.S. House Members to thank them for protecting key programs – and urge them to reject cuts to community college students.***

 ** Click here to email your U.S. House Members where you live and serve students! **

ACCT has prepared a sample email template you can easily send to your U.S. House Members. ACCT provides the contact information for their legislative directors and education legislative assistants.

What Happens Next?

On Friday, June 5, the House Subcommittee on Labor, Health and Human Services, and Education (Labor-HHS-ED) will mark up (vote on) the bill and amendments. The full Appropriations Committee will mark up the bill on Tuesday, June 9. The full House must also pass the bill. Meanwhile, the Senate is expected to release its version of the Labor-HHS-ED bill in the coming months. Both the House and Senate must pass identical versions of the bill, and the president must sign it into law. Due to the short timeline before the September 30 funding deadline, Congress may give itself an extension by passing a short-term continuing resolution (CR).

Key Resources:

• Labor-HHS-ED Bill Text, Subcommittee Markup Friday June 5, 8 a.m. Eastern, Full Committee Markup Tuesday June 9, 11 a.m. Eastern
• Majority (Republican) Press Release and Summary
• Minority (Democratic) Press Release , Summary , and Fact Sheet
• ACCT FY27 Resources on Appropriations:
•       ACCT and AACC Letter on FY27 Funding Priorities
•       Community College Federal Funding Priorities in Detail
•       Final House and Senate FY27 Group Sign-on Letters

Community College Appropriations Priorities Table, FY27

Jonathan Elkin is the Director of Government Relations at ACCT

Photo Credit: PICRYL